Washington, DC: President Donald Trump’s new 10% tariffs on imported goods took effect Tuesday, reviving his trade agenda after the Supreme Court invalidated many prior global duties.
According to reports, the White House justified the measures Friday as addressing “large and serious United States balance-of-payments deficits.” Trump vowed to increase rates to 15%, maintaining exclusions for US-Mexico-Canada Agreement (USMCA) goods and sector-specific probes.
In a 6-3 ruling Friday, the conservative-majority court held Trump exceeded authority under a 1977 law for “arbitrary” country-specific tariffs, opening refund fights but preserving some duties as a bridge to durable policy.
These 150-day duties — extendable by Congress — bridge to permanent policy. It separately said it would start collecting the new 10% tariffs on February 24.
Reports said, US Customs and Border Protection will stop collecting invalidated tariffs today while starting new 10 per cent levies. Erica York, Tax Foundation vice president of federal tax policy, said prior Trump tariffs added USD 1,000 average tax per US household in 2025, with new duties projecting USD 700 burden in 2026.
India, a top US import source with USD 80 billion-plus annual exports including pharmaceuticals, textiles and gems, faces direct exposure. The duties could hit these sectors hard, raising costs amid ongoing bilateral trade talks for a mini-deal.
Trump claimed on Monday the ruling grants him “far more powers and strength,” hinting at using licenses for “terrible” actions against foreign nations. With tariffs curtailed, former US trade official Wendy Cutler said licensing offers leverage but lacks tariffs’ “flair and quantitative nature.” Cutler, now Asia Society Policy Institute senior vice president, warned it signals displeasure amid clipped authority.
Trump also threatened hikes on countries “playing games” post-ruling, despite recent duty-threatened deals. Over the past year, he varied rates abruptly to pressure partners. US Trade Representative Jamieson Greer said Sunday on CBS that agreements endure: “We expect our partners to stand by them.”
The potential 15% rate exceeds prior 10% levels for allies like Britain and Australia. Cutler cautioned this risks deepening partner frustration, spurring trade diversification from the US—though outright retaliation seems unlikely.
The threatened 15 per cent exceeds prior 10 per cent for allies like Britain and Australia. Wendy Cutler, ex-US trade official and Asia Society Policy Institute senior VP, noted licensing as a tariff alternative lacking “flair,” warning of partner frustration and diversification from US markets.
For India, this revives risks of reciprocal duties on US farm goods and tech, echoing 2019-2021 tensions, even as New Delhi eyes WTO challenges.
Trade analysts said the reset effectively cuts the rate on many Indian goods that had been facing up to 18 per cent under bilateral “reciprocal” deals but broadens coverage to a wider basket, tightening margins for labour-intensive sectors that depend heavily on the US market.
Gems and jewellery exporters, who ship an estimated USD 10–12 billion annually to the US, warned of job losses in hubs such as Surat if higher duties persist, after already grappling with earlier hikes linked to Washington’s complaints over India’s Russian crude purchases.
Textile and apparel makers, with roughly USD 15 billion in exports to the US, as well as auto component, chemicals and engineering goods firms, also face demand risks and pressure to absorb part of the tariff shock, even as pharmaceuticals and certain energy-linked items remain partly cushioned by exemptions.
India’s Commerce Ministry has said it is “studying the implications” of the new tariff regime and the Supreme Court verdict, while industry bodies have urged New Delhi to seek relief for vulnerable sectors and press ahead with talks on an interim trade pact.
